House Panel to Look at Tanker Award

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The U.S. House of Representatives said it will hold a hearing Wednesday on the Air Force’s decision to award the lucrative tanker replacement contract to the team of Northrop Grumman Corp. and European Aeronautic, Defence & Space Co.


The hearing was called by Rep. John Murtha (D Penn.). Testifying will be Assistant Secretary of the Air Force, Sue Payton, and Payton’s military assistant, Lt. Gen. Donald Hoffman.


“The purpose of the hearing is to have the Air Force explain their decision on the tanker aircraft, as well as to address Congressional concerns,” a spokesman for Murtha told Bloomberg News.


The Air Force awarded the Los Angeles-based defense and government contractor and its European partner a $40 billion contract to begin replacing the Air Force’s aging tanker force one of the most pressing needs of the U.S. military.


Much of Northrop’s plane will be built in Europe, but the Northrop-EADS venture plans to use hundreds of U.S. suppliers and do the final assembly in the United States, supporting 25,000 American jobs. The first planes are expected to enter service in 2013.


Shares in Northrop dropped 2.6 percent to $80.40 in early trading Tuesday on the New York Stock Exchange.

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